Investors who used to be against crypto are now more likely to use Bitcoin and its ilk as a way to protect against the inflation of fiat currencies.
Hungarian-born billionaire Thomas Peterffy said that it would be smart to have 2-3% of your portfolio in crypto assets just in case the value of the dollar goes down to „hell.“
He is said to be worth $25 billion.
Peterffy’s company, Interactive Brokers Group Inc., said that it would start offering crypto trading to its clients in mid-2020 because there has been a lot of demand for it.
The company currently only has Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. This month, the company plans to add another 5 to 10 coins to that list.
Bloomberg says Peterffy, who owns an unknown amount of crypto, said that it’s possible that digital assets could make „extraordinary returns“ even if some of them also went to zero, even though some of them might not.
Then he said, „I don’t know.“
One of the richest people in the world said in December that Bitcoin could rise to $100,000 before the market starts to fall back down again.
Ray Dalio, the founder of Bridgewater Associates, is another well-known billionaire who said last year that he had some Bitcoin and Ethereum in his portfolio.
His doubts about crypto came up a few months ago. This came right after this revelation.
When he first said that cash was „trash,“ he thought it was a bad idea to invest in crypto assets. Now, he thinks of them as „alternative money“ in a world where „cash is worthless“ because of inflation.
When Dalio talked about crypto in late December, he said that he was impressed with how long it had been around. „Cash, which most investors believe to be the safest, is, I think, the worst investment.“
One of the world’s wealthiest hedge fund managers named Paul Tudor Jones also bought Bitcoin last year, calling it a way to protect against rising prices.
There has been a lot of economic turmoil around the world because of stimulus packages that were caused by pandemics. This could last for years.
There has been a four-decade high in inflation in the United States. The rate is 6.8%.
This has led to a rise in the Consumer Price Index (CPI) because the prices of everyday goods keep going up.
As time goes on, more and more billionaires are switching from fiat currencies to crypto assets because they see the risks.
People who are rich could join their ranks in 2022, if the trend keeps going.